Heterogeneous Returns to Education in the Labor Market

42 Pages Posted: 20 Apr 2016

See all articles by Tazeen Fasih

Tazeen Fasih

World Bank

Geeta Gandhi Kingdon

University of London - Institute of Education

Harry A. Patrinos

World Bank

Chris Sakellariou

affiliation not provided to SSRN

Måns Söderbom

University of Oxford - Department of Economics

Date Written: August 1, 2012

Abstract

Since the development of human capital theory, countless estimates of the economic benefits of investing in education for the individual have been published. While it is a universal fact that in all countries of the world the more education one has the higher his or her earnings, it is nevertheless important to know the empirical returns to schooling. However, simply knowing average returns is not useful in a world of heterogeneity. This paper finds increasing returns going from the lower to the higher end of the earnings distribution, but with some important differences across regions. The returns increase by quantile for Latin America. The returns decrease by quantile for most East Asian countries, producing an overall equalizing effect. India and Pakistan demonstrate opposite results. In Ghana, the returns across the distribution are flat, while for Kenya and Tanzania education is dis-equalizing.

Keywords: Education For All, Access & Equity in Basic Education, Primary Education, Teaching and Learning, Debt Markets

Suggested Citation

Fasih, Tazeen and Kingdon, Geeta Gandhi and Patrinos, Harry Anthony and Sakellariou, Chris and Soderbom, Mans, Heterogeneous Returns to Education in the Labor Market (August 1, 2012). World Bank Policy Research Working Paper No. 6170. Available at SSRN: https://ssrn.com/abstract=2129612

Tazeen Fasih (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Geeta Gandhi Kingdon

University of London - Institute of Education ( email )

20 Bedford Way
London, WC1H 0AL
United Kingdom

Harry Anthony Patrinos

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States

Chris Sakellariou

affiliation not provided to SSRN

Mans Soderbom

University of Oxford - Department of Economics ( email )

Manor Road Building
Manor Road
Oxford, OX1 3BJ
United Kingdom
+44-(0)1865 271084 (Phone)
+44-(0)1865 281447 (Fax)

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